Updated: Air Malta suffers lease setback
An Air Malta Airbus leased to Polish airline OLT Express has returned to Malta after the company stopped flying over the weekend.
The aircraft is one of two that Air Malta leased to third parties as part of its restructuring programme.
The development is a setback for Air Malta since 10 pilots that were seconded with OLT Express as part of the lease agreement reached in April will also be returning.
Air Malta said it will hold a meeting with the Airline Pilots Association on Thursday to determine the future of the 10 pilots since its current requirements were for only 110 pilots.
The airline hoped the discussions will be fruitful and that both sides will work together to resolve this difficulty.
OLT Express cancelled all domestic flights in Poland over the weekend leaving thousands of passengers stranded.
In a statement issued this evening, Air Malta said it had agreed to provide the aircraft to OLT Express up to November 2015.
It said it was not owed money by the Polish airline for the aircraft lease and although outstanding aircraft leases would become payable, it had a deposit of half a million dollars, agreed upon in the negotiations, to cover this debt.
“Air Malta has taken all necessary actions to protect its interests.”
The airline said it had already started discussions with several airlines to lease this aircraft and interest has been shown.
Popular Stories
Old buses, drivers to return
Former Judge Ray Pace found dead
Updated: Minister apologises for...
Three new Nationalist MPs elected –...
Where’s Everybody staff is given notice
Updated - Director of Prisons submits...
Update 3 - Woman trapped as car crashes...
Revealed...the face of a Maltese woman...
PL reacts as PN labels Franco Debono's...
In Discussion
Old buses, drivers to return
Updated: Minister apologises for...
PL reacts as PN labels Franco Debono's...
Updated - Director of Prisons submits...
Enemalta seeking minimum five year gas...
Protected birds shot and trapped as...
Mario de Marco, Zammit Dimech concede,...
PN postpones salaries as financial...
Updated - PM's offer to Opposition MPs...
60 Comments
Post comment
Please sign in or create your Account to post comments.
Lawrence Fenech
Aug 1st 2012, 13:09
It's the maltese who are suffering by paying through their taxes for all the damages done by Gonzi and his clique. Tonio li jifhem fil-jets jafu dan, u RCC li jifhem RJ's jaf ukoll. Nofs il-haddiema tal-Airmalta li spiccaw f'nofs it-triq jafhu ukoll. U issa il-piloti qed juru li kullhadd qed jigi injorat min Davies u shabu.
j brincat
Aug 1st 2012, 12:00
After yesterday's pomp and zest this bombshell!
When exactly did Air Malta say yesterday (during the expensive PR exercise) that it is turning profitable again? Will there be a revision of the projections?
(jb)
Malicia Dabrowicz
Aug 1st 2012, 10:52
I dont understand what Gonzi and Muscat have with this affair. If you allow me to explain - since I am Polish. OLT Express was a low cost flights company that is linked to company called Amber Gold. This is a para banking private enterprise that offer people saving with huge interests. Tens of thousands Polish people trusted Amber Gold with their savings hoping for a big profit. Trouble is Amber Gold has no license to offer such services, they are outside of banking operation watch and completely on their own. There are already reports that Amber Gold works as a Ponzi scheme (financial pyramid where people who came before are paid from the money of those who got involved afterwards), the head of Amber Gold is imvestigated by Polish forces for past and (possibly) present fraud and money laundering. People now in Poland suspect we are going to have a crash of Amber Gold and many people will lose their liife savings once the whole thing comes down. It wouldnt be the first of its kind, we had similar stories before.
Now OLT Express started at the beginning of the year. They offeres as little as 100 PLN for a flight (20 EUR) which is impossible to offer in the first place (even Ryan Air have more costs like luggage and fees), otherwise they would not have funds to pay the pilots and service the planes. So as you can see OLT have leased them, from Air Malta and other companies. The lease was paid by Amber Gold and there reports that come out now saying that the lease was paid possibly from the funds of the people who gave their savings to Amber Gold. Money laundering is investigated.
Air Malta have been a victim of Amber Gold /OLT Express as much as Polish people who moved their savings to Amber Gold. Those things happen unfortunately.
T Mifsud
Aug 1st 2012, 12:56
Air Malta is not a victim as no money is due according to Davies & Co
Ronnie Callus
Aug 1st 2012, 17:12
This is similar to what happened in America where a lot ended without pension and the fraudist in jail. When moral values fails the people are going to suffer/
HENRY FENECH AZZOPARDI
Aug 1st 2012, 10:47
It is incredibile how everyone down below tries to put the blame on Gonzi or the Government. Air Malta is a commercial Company and as such it is vulnerable to all business outcome whether this is negative or positive.
However, it is to be noted according to the press news that this time round the contract entered with the polish company was much more professional and as such the Airline is covered by a deposit to make good for the losses.
Obviously there still is the staff problem and immediate discussions are planned to soften the impact on these pilots and maybe cabin crew.
Air Malta is also in contact to find a replacement airline to continue with the lease contract. Therefore it is far off the doom and gloom of most comments down below. This is an example of how contracts should be handled to limit the damage when things go wrong. Dan mhux cuc.
However it seems from the comments that some people seem to cheer up for the least mishap that any parastatal company may experience. As if Dr. Gonzi has a magic wand and finds a solution to everything.
My full trust in the Government makes me feel at ease that whatever the outcome Air Malta will pull through these turbulence and will service our country for the future.
To the staff concerned I urge them to unite and work with the management to ease the impasse. This Government who boasts of the lowest ever figure of individuals registering for work will once again show one and all that its priority is creating jobs.
The Government believes that with the increase number of employment its revenue through social contribution will increase and the general public will benefit through social benefits.
These are the yard sticks that the general public has to look into when it comes to an election. This Government was faced with all kind of turbulence coming from all directions even from inside the party and still keeps going for the good of the country.
I know quite a good number of readers disagree but I have a right for my own opinion and if one wants a proof of such a yard stick one can only visit any one of the big shopping food chains and witness the floods of shoppers without any one of these stores closing down.
Eddy Privitera
Aug 1st 2012, 11:57
Sur Fenech Azzopardi: X'kont ghidt jew ikkumentajt meta fil-gurnali tal-PN , meta Mintoff waqqaf l-Air Malta, fil-gurnali tal-PN kien jintqal li l-ajruplani taghha kienu GHASAFAR TAC-COMB ??? Tkazajt jew le dak iz-zmien ?????
j brincat
Aug 1st 2012, 11:57
What do you expect that people now go on without food?
Most probably the food chain you refer to is the one which sells the cheapest and which obviously is doing well as shoppers are taking the advice of EFA who once said 'shop around to find the cheapest prices'.
"As if Dr. Gonzi has a magic wand and finds a solution to everything".
And isn't this very much evident? What happened to those mythical 'Par Idejn Sodi'? How feeble they have become!
(jb)
M. Cachia
Aug 1st 2012, 12:22
@ Mr. Fenech Azzopardi - you seem to have learned a great deal from the Aircraft Models you have on display!
Re. Dr. Gonzi & the Magic Wand.................. please remind yourself of the infamous letter sent to every KM Employee on the Eve of the Last General Election!
Your full trust in the Gov should therefore stop there! It was the same Gov whom you seem to love so much that brought this Once Pride Of Malta down on its knees!
john muscat
Aug 1st 2012, 10:38
Can Mr. Davies confirm that the Maltese airline went bankrupt because it was named AIR MALTA? So now our national airline will come out of the red because Mr. Davies changed the livery? God knows what the people would have said if a CUC Malti had done so, apart from the thousands of € Mr. Davies is getting for services which ANY CUC Malti is capable of doing!
S. Zammit
Aug 1st 2012, 10:27
Good luck AirMalta, most of the Maltese are backing you and wishing you every success.
Rocco Camilleri
Aug 1st 2012, 09:16
What a bad news Mr.Davies, this is going to put more pressure on the Airline re-structuring apart from the pilots losses who have studied so much and paid hefty money for their courses. Hoping that you succeed to find a new opening.
E Schembri
Aug 1st 2012, 09:03
Don't worry people, the 2 million paint job will surley motivate the employees and these 10 pilots!
Ronnie Callus
Aug 1st 2012, 08:07
Dr.Gonzi ma' tghidilna xejn fuq dan ???? finqas minn erba xhur 10 pilots gew redundant . Ghadna lanqas bdejna u diga morna minn sieq wahda. U mela nigu nghamlu l-festini u nizbghu l-ajruplani qiesna dawn se' jgibu l-AirMalta fuq saqajha jew qiesha l-AirMalta bdit illum. Hekk sew !! flok naraw kif innaqqsu li-spejjes inkomplu nzieduhom bil-prentenzjoni li wara t- 2015 l-AirMalta tibda tghamel il-qliegh. Kollox hekk qed isir, niddejnu mbad naraw. Din mhi serjeta xejn ghax spiccajna issa li lanqas inlahhqu ma' l-imghax ma' qedien ahseb wara kemm se' nhallsu d-dejn mit-taxxi tal-poplu.
J. Borg
Aug 1st 2012, 08:37
Dear Mr Callus....this is not Dr Gonzi's fault but circumstances of a different airline stopping operations. My common sense dictates that the same would have happened if there was Dr Muscat as PM.
Ronnie Callus
Aug 1st 2012, 10:22
@ J.Borg:
Veru c-cirkustanzi gabu dan. Allura qed naraw dan il-bahar imqalleb inkomplu nonfqu l-miljuni ta'-flus minghajr hsieb ta' xejn, flok innaqqsu d-dejn qedien inziduh fuq xi haga li mhiex daqstant importanti, bhaz-zebgha ta' l-ajruplani b'festin maghhom u bdil ta' l-uniformijiet etc; etc;.minnaghha ta' Davies bil-barka tal-Gvern. Barra dan nigu nibnu Tejatru u Parlament meta konna ghaddejjien fl-imkien ma' bridge li inghata lil barranin biex tkompli taxxaqa. U dan meta Dr. Gonzi stess kien qalilna li qed jara l-mewg gej fuq ix-xeffaq, ahseb wara li kieku ma' rahx mela x'kien jghamel izjed !!! Fejn hi is-s Serjeta fit-tmexxija tal-finanzi flus il-poplu migbura mit-taxxi.
Eddy Privitera
Aug 1st 2012, 11:29
J.Borg: X'investigazzjoni ghamel il-Bord fuq il-kumpanija qabel iddecieda li jikrilha l-ajruplani ??? S'issa ma smajna xejn !
Mario Micallef
Aug 1st 2012, 07:30
Jien ma nistax nifhem kemm hawn nies b'mentalita maghluqa go dal-pajjiz...huwa ta' sfortuna li din il-lease kellha tispicca hesrem...pero f'gieh is-sema xi hadd isegwi d-dinja tal-avjazzjoni? jafu kemm airlines spiccaw falluti? din il-mentalita' li nahsbu li qed nghixu go buzzieqa trid tispicca!! xi kultant nibda nahseb li hawn nies bil-qeghda lesti biex jiehdu gost bid-deni! ara meta tigri xi haga tajba tghoddhom fuq subajk dawk li jfahhru!
Jeffrey Mallia
Aug 1st 2012, 08:09
" ara meta tigri xi haga tajba tghoddhom fuq subajk dawk li jfahhru!" Bhal ???? Prova ahseb fxi haga veru tajba Micallef ....
G Schembri
Aug 1st 2012, 08:17
Naqbel mieghek li hawn problemi fis-setur tal-aviazzjoni, huwa appuntu l-management tal-Air Malta li qed jahseb li qed jghid go buzzieqa ghalfejn hlew 2 miljun euro f'rebranding? Nispera mhux se naghmlu bhad-dockyards fejn flok bezghu ghal flus ghamlu minn kollox biex izidu d-dejn u jfalluh.
Lawrence Fenech
Aug 1st 2012, 08:53
@Mario
Ahna l-Airmalta tinteressana ghax dik taghna. Irridu inkunu ahjar minn haddiehor u mhux nikkunslaw ghax hemm min hu ghar minnha. Kun patrijott.
Ronnie Callus
Aug 1st 2012, 09:06
@ Mario Micallef:
U mela mhawnx nies li jfahhru t-tajjeb !! biss irid ikun hawn xi haga Tajba biex tkun tista tikkumenta u tfahhara. Allura kif ghitd tajjeb int f'sitwazzjoni bhall din tmur tonfoq il-miljuni biex tibdel il-kuluri ta' l-ajruplani, tghamel festin, tibni Tejattru u Parlament ( meta konna moqdijjin), tghamel Power Station tahdem bil-heavy fuel oil biex imbaghad wara tghid li se' nghamluha tahdem bil-Gas u nistghu nibqu sejrin hekk, flok il-Gvern jara kif jiffranka l-flus jew juzhom aktar bil-ghaqal. Kellna ghalfejn ingibu lil Mr.Davies biex nizbghu l-ajruplani, nibdlu l-uniformijiet etc; etc; u nhallsuh bill Belli Euro. Hafna zgur dan qed jarawh bla sens u se' jerga jigri ezatt bhall tad-Drydocks b'hafna haddiema tas-Snajja barra mohlija jghamlu xoghol iehor li mghandu x'jaqsam xejn mas-sengha taghhom. Dan kif jista jghaddilek mill-garigori ta' mohhok li jkollok dawk il-mijiet ta' haddiema fis-Snajja differenti u ssibilhom xoghol fis-sengha taghom meta l-fabbrikki jiehdu numru zghir ta' nies tas-snajja. Ftit melh irid ikollok u mhux tara kemm se' tiggwaddanja int personali- bhall 500 euro fil-gimgha li hadu tal-Parlament .
Mario Micallef
Aug 1st 2012, 10:04
sur Ronnie Callus...ma kellix ghalfejn naqra l-kumment tieghek ghax huwa l-istess li ilu jghid il-One Tv..grazzi...
Eddy Privitera
Aug 1st 2012, 11:41
Maruio Micallef_ Skuzi ta, imma ghaliex dawn l-affarijiet jigru taht gvernijiet tal-PN ? Hemm bizibilju ta' stejjer bhal dawn. Bhal dik li storja ta' kumpanija - mnghalija kien jisimha AMS -li kienet giet suppost se tohloq hafna impjiegi, u wara ftit taz-zmien ghosfrot bil-flus li kien ta' l-gvern nazzjonalista fi zmien John Dalli ! U li storja l-ohra ta' dak il-progett li bniet it-Tarzna u li n-negozjati dwar il-prezz sar minn barrani li ngieb apposta, biex wara nstab li l-prezz li nnegozja lanqas kien ikopri l-materjal BISS li ntuz fil-progett 1 u t-tyarzna tilfet miljuni kbar - xi 30 miljun jekk niftakar tajjeb ( ma niftakars hux Liri Maltin ) !
Ronnie Callus
Aug 1st 2012, 16:10
@ Mario Micallef:
Sur. Micallef jekk taqrax jew le l-kumment tieghi dik bicca tieghek, biss taf x'nghidlek li l-VERITA TWEGGA' .
Ronnie Callus
Aug 1st 2012, 16:19
@ Eddy Privitera:
U mhux dik biss ghidlu lis- Sur Micallef, mela ma' jiftakarx meta in-Nazzjonolisti kienu se' jwaqqfu linja ta' l-ajru qabel l-AirMalta bl-isem ta' AIRMELITA' jekk qed niftakar sew l-isem u harbu wkoll u bqajna lampa u stampa. Din serjeta issejhila jew nuqqas ta' kumpitenza fit-tmexxija tal-pajjiz - Sur.Micallef. Tinsiehx li dawn huma flus il-poplu..
Peter Simpson
Aug 1st 2012, 07:30
I never knew that Air Malta has been losing money because of brand awareness or lack of it; I thought it was all about costs!
Joseph Borg
Aug 1st 2012, 07:00
I don't see a problem. Have the pilots work as self-employed so that, when the aribus is leased again, they can be contracted to fly it. There's no need to have them on AirMalta pay books.
T Mifsud
Aug 1st 2012, 08:11
If your employer you work for were to think exactly like you, and you were one of the extra, you would certainly hesitate writing the way you did, especially your last sentence. These people have families, so every effort must be made that once Air Malta's management decided to recruit them, and after the promise by Gonzi was made assuring workers their employment, to keep them on the books and go the extra mile being competitive with new leases. Air Malta can probably make good money out of these leases.
John B Camilleri
Aug 1st 2012, 01:27
Dear Mr Murray and many others , I am very surprised with the way you blog , do you think it's also Airmalta's Fault or Mr Davies fault that OLT EXPRESS went bankrupt.
We all should feel sorry for what happened , not the least to fellow Maltese Captains that were stationed in Poland to support the Flights and now they have to wait until the situation is resolved.
Also note the branding is not just a paint Job, wake up for once and be positive about the future of AirMalta. This Tiny Airline should make all the Maltese proud, believe me if there is not Airmalta M Malta and the Maltese will stand to loose , BY FAR.
C. Bonnici
Aug 1st 2012, 01:14
I don't get why the 10 pilots can't be reallocated. Shall this Airbus not be re-leased?
P. Vincenti
Aug 1st 2012, 01:02
These pilots should be looked after. Hope that hey will not be used as scape goats.
Anthony Agius
Jul 31st 2012, 23:39
Who are you trying to kid Peter Davies? The real cost is the lease of the aircraft not the 10 pilots surplus to requirements. Scaremongering professionals because they are not yesmen does not work! Go on, admit it, the re-branding was a farce and the pilots were right all along!
Mary Ann Borg
Jul 31st 2012, 22:32
If Big Mouth Joseph was PM, OLT Express would not have folded, right?
Because Joseph will not rule just tiny Malta, but he will rule the world. He will ensure that oil and gas prices are lowered globally so he can then bring the price down in Malta too.
And to the aviation and tourism expert par excellance Peter Murray...............why have you gone so quiet and stopped attacking the tourism figures lately? Is it because the field-day you had when Malta registered a momentary down-turn in the first three months have now been encompassed by a consistent increase in tourist arrivals in this peak season of the year?
Mary Borg
Aug 1st 2012, 09:47
you surely know what a big mouth is!
Eddy Privitera
Aug 1st 2012, 11:50
Mary Ann Borg: If Dr. MUscat was prime minister he would have ensured that the people he appoints on the Board are capable people who do not rush in certain contracts before they do serious checking on the company they were to lease the aircraft to.
M. Bezzina
Jul 31st 2012, 22:19
Try to lease it to Libyan Airlines now!!!
Jimmy Ventura
Jul 31st 2012, 21:39
Issa m'hemmx cwiec Maltin imexxu l-Airmalta! Tghid haqqu xi bonus min qed jahdem four day week u jithallas xi nofs miljun ewro fis-sena?
Franco Attard Trevisan
Aug 1st 2012, 08:06
x'ghandu x'jaqsam? Taf taqra?
Robert Zammit
Jul 31st 2012, 21:34
Libsa dawn bla snes.... l-ahwa prezz irhas u ikel l-ahjar biss...... Jien mhux ma Airmalta.....
Alexander Brincat
Jul 31st 2012, 21:30
Peter Davies seems to have had his first setback. Are there any others on the way?
Now we have this not-so-brilliant and not-so-innovative rebranding exercise, with new aircraft paint livery. This looks very similar to the failed rebranding exercise made by the then-British Airways CEO Bob Ayling. That (BA's) rebranding was a total disaster which cost the airline millions of pounds.
Mr Davies should know quite well that it is not the aircraft's exterior paint that make the airline, but the crew's skill and friendliness, worker harmony and peace of mind and above all, the most important, common sense efficiency. On the last two he is failing brilliantly. Worker harmony and peace of mind is at its lowest. Efficiency has been thrown out of the window as common sense does not prevail: how can you save money when you throw away thousands for a one time inauguration party? How do you save the airline money when you spend almost 2 million euro at a time when money is needed most?
You use your common sense to cushion the effect that any unforeseen event might have on the airline.
Paul Borg
Aug 1st 2012, 07:44
Mr Davies did not get any setback- he will still get the full pay from the "crappy" airline.
Ronnie Callus
Aug 1st 2012, 07:57
@ Alexander Brincat:
Well said Alex, we are having people in management so much so in government that they know how to present figures/numbers but does not know the maths know-how. They are good in cosmetics but not on real things. If they are not going to put on their energies to make thinks well we are going to crash in most aspects as we already mostly done. The colourful planes does not make more people to use but as you said efficiency and working harmoniously as an engine do. If something lacks one will face trouble.
T Mifsud
Aug 1st 2012, 08:17
Will will not forget that a 'foreigner' called our airline a 'crappy airline'. This same guy was employed as CEO of this airline instead of a cuc Malti.
William Spencer
Aug 1st 2012, 08:21
What was the profitability, efficiency, success rates, of people prior to Mr Davies ?
Peter Murray
Jul 31st 2012, 20:49
Never mind the as the all you can eat and drink shindig tonight will go ahead as planned and to hell with the cost-as its only the taxpayers paying.
Franco Farrugia
Jul 31st 2012, 23:51
Why? Do you wish to be among them?
m. borg (slm)
Jul 31st 2012, 20:25
The genius who goes by the name of Mr Davies is supposed to be a super businessman who turns loses into profits, or so we are made to believe.
Now what "kulhadd jibqa b'dak li ha" and 10 pilots find themselves out on their Ss?
Now there is not acuc malti to point the finger at.
marco caruana
Jul 31st 2012, 19:57
basta zbahna l ajruplani !!!
GL Calleja
Jul 31st 2012, 19:15
This is not Air Malta's fault, maybe they can lease the aircraft to some other outfit? Let us wait and see how much longer that bail out of of 132,000,000MIllion euros is going to last. Even though it is no fault of theirs, Air Malta will be paying the price.
M. Cachia
Jul 31st 2012, 19:29
Nobody is pointing fingers at Air Malta as such but it would be good to know what clauses or measures where taken when the lease agreement was signed in order to safe guard its interests!
Reading through the Avro RJ Saga one wonders whether these people ever learn!
R Saliba
Aug 1st 2012, 09:00
@ M. Cachia - do you think that Air Malta or any company for that matter is stupid enough to sign a contract without an external lawyer's opinion on it?
If you don't know, it is required by law and regulations that a lawyer's opinion is obtained on the contract and that the clauses within that contract protect the Company and its customers, employees and shareholders at all costs.
I am expecting - since it was a lease contract that should have ended in 2015 - there is some sort of compensation for the early termination - all contracts have an early termination clause in them!! if you don't believe me go and check any contract you may have that needs to be renewed at some point in time
M. Cachia
Aug 1st 2012, 11:45
@ R Saliba - Any other company for all it matters would have for sure been wise enough.
Air Malta, a completely different story altogether! Just look at the Avro RJ Saga!
I know.....................
Victor Vella
Jul 31st 2012, 19:10
The development is a setback for Air Malta since 10 pilots that were seconded with OLT Express as part of the lease agreement reached in April will also be returning.- The restructuring plan is already crumbling down. The most important that we saw Gonzi and his boy, the bright creature that brought Air Malta on its knees, and Davies& Co. Ltd uncovering an aircraft that was covered with immaculate white sheet bearing the new Banana Republic logo on a miniature aircraft `s tail with the name Malta!!!!!!!
cesco di luigi
Jul 31st 2012, 19:45
V. Vella
Couldn't have put it better myself!!
Alan Cordina
Jul 31st 2012, 19:54
I am sure you're LOVING the bad (good for the likes of you that is) news about OLT !!
Tintgharfu mill- ewwel sentenza !!!! ha ha ha ha .....
Shawn Abela
Jul 31st 2012, 20:17
You are incorrect.
Its not the 10 pilots which are surplus to requirements, as the summer schedule proved to be extra busy for the remaning crew.
What is worrying is the agreement in place and the use of the 11th aircraft which will be sitting on the ground.
ANTHONY PAVIA
Jul 31st 2012, 18:49
And any monies due? Bye Bye? I suppose when you are in KM's position, you cannot really choose your debtors/sales partners.
R Bartolo
Aug 1st 2012, 01:09
"And any monies due? Bye Bye?"
Reading and comprehension not your forte.
ANTHONY PAVIA
Aug 2nd 2012, 08:02
No. Money is! However, I will duel with you on the two subjects you raised any time. Perhaps you should learn to follow the drift of a reply to the subject matter of the article.
Please choose the reason of your report below: